negative amortization in re nauman, case no. 396-36120 ... · pdf filenegative amortization in...

11 U.S.C.. § 1225(a)(6)feasibilitynegative amortization

In re Nauman, Case No. 396-36120-elp12; BAP No. OR-97-1264-JHN

9/18/97 BAP, aff'g ELP published

The bankruptcy court confirmed debtors' Chapter 12 plan for

reorganization of their cattle ranch. The BAP affirmed. The

bankruptcy court found that the plan was feasible. There was

conflicting testimony about whether the ranch capacity would

support debtors' proposed operation, whether debtors' projection

of cattle prices were supported, whether debtors' plan provided

for any margin to cover unexpected contingencies, and whether

there was any allowance for variances in cattle survival rate.

The trial court's resolution of those factual issues, resulting

in the conclusion that the plan was feasible, was not clearly

erroneous.

The bankruptcy court did not err in allowing a negative

amortization plan. Although the bankruptcy court was not bound

to apply the factors set out in Great Western Bank v. Sierra

Woods Group, 953 F.2d 1174 (9th Cir. 1992), its application of

those factors was not error.

P97-16(23)